US 375-Ass.Case Study 2 Netflix-2011 Rebranding & Price Increase Debacle.

US 375Netflix is an American entertainment company founded on August 29, 1997, by Reed Hastings and Marc Randolph. Netflix is headquartered in Los Gatos, CA. Netflix specializes in Video on Demand (VOD), streaming media, and DVD by mail. Netflix has expanded into original television and film production. Netflix has offices in Europe, Brazil, India, Japan, and South Korea. Netflix initial business model started with DVD sales and DVD rentals. Netflix expanded into digital streaming in 2007 while migrating from Netflix maintained cloud servers to Amazon Web Services (AWS) in 2008 for Netflix to concentrate on products and services unique to them. Netflix successful migration to AWS has allowed them to expand into different countries, offering new features, and self-customization. AWS services enable Netflix to track user’s preferences, minimize downtime, and Netflix administrative rights to customize along with scaling services to taste. Netflix launched offline viewing in 2016 to allow for more accessibility and compensate for members with limited internet connectivity. Netflix and Comcast have integrated services to enable more availability. Netflix is well postured to integrate their services into many mobile devices, tablets, smart televisions, and devices that haven’t been created yet. Spencer Wang Netflix Finance & Investor VP reports the following about Netflix Q4 2016 in a letter to shareholders:Marc Randolph and Reed Hastings founded Netflix Company in 1997(About Netflix). In 1998 Netflix launched its DVD mail delivery service with Blockbuster, Hollywood Video, and Walmart being Netflix’s main competition. Netflix offered tiered DVD rental service from $7.99 to $19.99 for unlimited DVD exchanges. Netflix offered Blu-ray disc rental for an additional fee. Netflix sold used DVD’s and Blu-ray billed as rentals but was discontinued around 2008 (About Netflix). Around 2000 Netflix begins to employ analytics to track customer behavior to differentiate themselves from the competition. Netflix also created a $1 million prize for quantitative analysts outside the company who could improve Netflix first generation search engine Cinematch algorithm by at least 10 percent (prize won by BellKor's Pragmatic Chaos 21SEP09). 23MAY02 Netflix Initial Public Offering (IPO) was $15.00 a shar